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    The process included a comprehensive look at all the levels of service, budget availability. The primary drawback to budgeting on a cash basis is that accrued liabilities are not directly built into the expenditure estimates. The Budget Document is the legislative means to allocate towards anticipated provig resources.

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    The process included a comprehensive look at all the levels of service, budget availability. The primary drawback to budgeting on a cash basis is that accrued liabilities are not directly built into the expenditure estimates. The Budget Document is the legislative means to allocate towards anticipated provig resources.

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    107 views198 pages

    2012 Radnor Township Manager Budget Recommendation Report

    Uploaded by

    lchips
    The process included a comprehensive look at all the levels of service, budget availability. The primary drawback to budgeting on a cash basis is that accrued liabilities are not directly built into the expenditure estimates. The Budget Document is the legislative means to allocate towards anticipated provig resources.

    Copyright:

    Attribution Non-Commercial (BY-NC)
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    2012 Township Manager Recommendation Budget Report (v.2) Radnor Township, PA 301 Iven Ave. Wayne, PA 19087 www.radnor.com 610.688.5600 Version 2, November 18,2011 2012 Township Manager Recommendation Budget Report (v.2) 2012 Township a Manager “Dor? Proposed : ie aa ieanec: Recommendation ae Budget Report (v.2) ce fee Radnor Township, PA November 18, 2011 ‘Members of the Board of Commissioners: ‘The Administration respectfully submits the 2012 operating budget and the updated 2012-2015 capital improvement plan (amended). The process included a comprehensive look at all the financial areas of the Township's operations, levels of service, capital needs, and funding availability. The proposed budget presents a financial document that looks at the last four years of actual information, plus the current year budgeted estimates and the proposed 2012 activity. The budget document is the legislative means to allocate anticipated resources (revenues plus cash reserves) towards providing the municipal services to the stakeholders of Radnor Township. ‘The financial information included in the budget is presented on a cash basis of accounting which means that revenues and expenditures are recognized when they are actually received or spent (not necessarily when they are incurred). The primary ‘benefits of presenting this information on a cash basis are that it is easier for the casual stakeholder to understand the information and that it can be directly reconciled back to the Township's financial data since the Township operates on a cash basis. Annually, the Township converts its cash books to comply with Generally Accepted Accounting Principles (GAAP) through the financial audit process. The primary drawback to budgeting on a cash basis is that accrued liabilities are not directly built into the expenditure estimates. age 2 of 168 2012 Township Manager Recommendation Budget Report (v.2) Chapters: Included in the budget package are the items identified below. In addition to including the budget and capital plan, the purpose of including the other items is to make sure that these specific projects that have been worked on over the past year are identified and are being monitored. Budget Items: © Executive Summary = 2012 Budget Document © 2012-2015 Capital Plan Other Financial Related Items: = Supplemental supporting information and documentation «Administration Goals (submitted to the Board of Commissioners in September 2011) «Audit Findings Summary Report The Budget Process: ‘The Township Administration has taken the past two and a half months to gather the financial information presented in this report. The primary focus for the 2012 budget was to more clearly report the tremendous amount of services offered by the Township from each of the Departments. To that end, later in this executive summary and within each of the departmental narratives throughout the detailed portion of the budget, there are tables, graphs and explanations discussing these services. Further, in an effort to assign cost to the services, Department Heads were asked to identify the major service items and develop the cost breakdown for those services. We are pleased at the outcome of this effort because it provides a critical link between the list of services and this budget document (which summarizes the cost of providing those services). The administrative process in developing this budget consisted of the following steps: Special Finance and Audit Committee of the preliminary budget and discuss the 2012, 2013 planning and budgeting process October 7* Distribution of the Preliminary Budget document that was discussed at the October 4" Special Board meeting, October 10" Board of Commissioners adopted the 2012 budget calendar as well as the 2012 Discussion Items for the 2013 budget process calendar ‘October 11-28" Administrative kick-off meeting (October 11") where budget instructions and documents were distributed to each of the Departments, Then from the 11" through the 28" departments worked on assembling their requests for the 2012 budget year as well as develop the service listing and costing summaries Page 3 of 168 2012 Township Manager Recommendation Budget Report (v.2) October 28" ‘Administrative deadline for the 2012 budget and capital requests October 31"*— ‘The Administration compiled, analyzed and prepared the Township Manager's ‘November 10* Recommended 2012 Budget and Capital Plan ‘November 11 ‘Submission of the Township Manager's 2012 Budget and Capital Plan to the Board of Commissioners November 14% Adoption of the preliminary budget (discussed on October 4") ‘November 28" Charter mandated public hearing on the Township Manager's recommended 2012 Budget and Capital Plan December 12° ‘Scheduled adoption date for the 2012 Budget, Capital Plan and Fee Schedule Administrative Summary: ‘The Administration, under the general guidance of the various reports that were completed in 2011, prepared the budget with the ultimate goal of maintaining the excellent level of municipal services while continuing to streamline operations and maximize the available resources anticipated in 2012. Further emphasis was placed on making sure that the Township was being compliant with the various local financial laws in place such as the target General Fund balance of 15% of revenues (Administrative Code §44-10) and the balanced budget requirement in the Home Rule Charter (67.02). ‘As proposed, the 2012 budget includes a balanced General Fund as well as an estimated fund balance which represents 20% of estimated revennes. In fact, with the exception of the Park & Open Space Fund, all the Township funds are anticipated to generate sufficient revenues to cover budgeted expenditures. The Park and Open Space Fund is not balanced since the estimated revenue generated from 25% of the Real Estate Transfer Taxes for 2012 is not estimated to be sufficient to cover that debt service associated with the 1994 open space referendum and subsequent borrowing of $10,000,000 (which now exists in the Refunded Bonds, Series 2009). Please see the Executive Summary of Fund Activity Report on page 135 for more information. iscussion Items included in the 2012 Budget: | [Property ‘Tax [REE ee eres | | Aatetment increase of 0.11 mills which equates to 3.0296. The table below shows what the increase will cost the average assessed value residential properties (in the various | v2 Update: Amended segments): | to include updated | regional CPT | | information and eel | tedated 2012 oa) | $50— Sass $1839 | assessed valuation rom | $288524— 89727 ua | 9,728 $716954 5: | Delaware County) ($776,932 — $1,024,135, $97.38 | fT staae sizes 5 Page 4 of 168 2012 Township Manager Recommendation Budget Report (v.2) 25 $149.97 [st 70 $182.55, $1,765,748 $2,012,951 7 $205.45 $2012, 952— 92200155, + $230.50, $2,260,156 $2,507,359, 5 3260.83 $2,507,359 — $2,734,563, 1 3291.52 $2,754,564 — $3,001,767 3 af $5,001,768 — $3,248,971 z 3350.76 In addition to the updated CPI, since v1 was submitted on November 11, Delaware County released their 2012 assessed value totals. For Radnor Township, the table below reflects those changes. Please note that changes in total assessed value only include those properties that made significant improvements, new construction, valuation appeal reductions, etc. in 2011. This does not represent a comprehensive revaluation of property. Excluding any adjustment in the millage rate, the increased assessed valuation increases the estimated gross property tax billing by $78,190, before adjustments for delinquent / non-payments. 3,131,318,978 | $ 31,507,618 3,131,330,605 L627 or 3.124938,680 | (6591,923) “20% 3.146.412,804 | __21en4zie | Om Wage Adjustments ‘Wage Accounting The 2012 budget includes 3% wage increases for all emplayees except for the ‘Township Manager and those employees who were recently hired and are stil in their probationary period. ‘The following rules exist with regard to these increases: ‘+ Uniformed Police Officers: The Fraternal Order of Police (FOP) collective bargaining agreement requires that members receive a 3% increase effective V/1/2012. This is the first wage increase for these employees since wv2010. + Non-Uniform, Union Employees: Radnor Association of Township Employees (RATE) collective bargaining agreement requires that members receive a 3% wage increase effective 1/1/2012. This is the first wage increase for these employees since 1/1/2010. + Non-Union Full and Part-Time Employees: The budget includes an assumed 3% increase for each of these positions except for the Township Manager and recently hired employees. Any increase authorized by the Manager will be based on performance and will be subject to Board of Commissioner approval. ‘The 2012 Budget includes an accounting policy change on how the wages of certain employees are treated. Included in this budget document is an “Expense Allocation Policy” that outlines the positions and the percentage of wage allocations. This policy is the resuit of prior years” andit comments recommending that a policy exist. Page 5 of 168 2012 Township Manager Recommendation Budget Report (v.2) Rp ed ees Impact of School Grounds Maintenance Agreement ‘The 2012 budget assumes that the cancellation notice that the Board of Commissioners provided the School District effective December 31, 2011 will be realized. To that end, there are two significant changes to the 2012 budget to point out ‘+ Local Service Tax Revenue: State law mandates that $5.00 of the $52.00 in ‘annual withholdings belongs to the School District. Therefore, the 2012 revenue estimate acknowledges that reduction. The full revenue estimate is $1,000,000. After the District’s 9.6154% is removed, the net estimate for the Township is $903,846. ‘+ Park Maintenance Budget: On the expense side, in order to offset the loss of the LST Tax, there are two vacant positions that are not budgeted to be replaced. The net savings, after all of the other expense factors of the department are considered, is $154,612. ‘Additional Staffing ‘At the request of some Board members, the 2012 budget includes hiring one fall- time Rental Housing Code Enforcement officer at a full-year estimated cost of ‘$94,409 as well as part-time Property Maintenance Officers at a cost of $42,603. See the Schedule of Employee Payroll and Related Liabilities and Benefit Expenses report for full details. “Accounting Change “Major Expense Items not Included Th 2011, the Township changed how it accounted for employee related costs cluding employee and retiree health care, life insurance, workers’ compensation and social security taxes. In 2010 and prior, these expenses were accounted for in aggregate in the General Fund which made it difficult to begin to truly identify the cost of service by department. To begin to solve that issue, beginning with the 2012 year, these costs will be charged directly to the departments based on the various ‘cost drivers. To help with comparative analysis, adjustments were made to the 2011 activity as well. ‘The ultimate goal is to better report how much it costs to provide various services. Several major liability items are not included in the budget at this time in anticipation of the 2012 Discussion items for the 2013 Budget meetings. ‘Those items include: + Capital Funding - the budget does include a General Fund transfer of ‘$250,000 to cover current year, critical fleet replacements. However, this ‘amount is insufficient to cover required annual fleet requirements as well as requirements for storm water management, park maintenance / improvement, facility maintenance / improvement, etc. © Other Post-Employment Benefits (OPEB) Liability: The December 31, 2010 liability was $9,513,641. The 2012 budget (proposed) continues to aly include pay-as-you-go funding which covers the cost of the current retirees, but doesn’t address the cost of future retirees. + Compensated Absences Liability ‘The December 31, 2010 liability was $4,549,137 and the 2012 budget does not include set-asides for any 2012 retirements. Therefore, any costs incurred will have to come from cash reserves. Page 6 of 168 2012 Township Manager Recommendation Budget Report (v.2) ise eee zi © Pension Funding: ‘The 2012 budget includes the full amount of the minimum municipal obligation (MMO) which is $855,232 for the Police Pension and $1,280,125 for the Civilian Pension, but does not include any additional funding for the growing actuarially calculated unfunded portion. ‘Charges for Service One new fee being prop regard to the cost associated with scheduling | athletic field use: for the various sports organizations / groups. It is not the ‘Administration’s intention to generate revenues sufficient to cover the costs of ‘maintaining the fields. Instead, the Township incurs costs administering the scheduling of use. Since those costs are specifically the result of activity that | benefits a certain group; itis recommended that a fee be charged to help offset those costs. Therefore, the 2012 fee schedule includes the reintroduction of a Field Permitting Fee that will be charged to outside sports organizations for use of | Township fields. The Township charged a similar feo prior to 2011. At this time, | it’s anticipated that the fee will generate approximately $35,000 in 2012. Financial Summary Information: Cost of Service Reporting: One of the primary areas of focus while developing the 2012 budget ‘was on service. Radnor Township offers its residents and business a tremendous amount of life safety, infrastructure and quality of life services. At times, it seems that these services get lost in the analysis of the numbers. This section of the report will focus not only on the larger financial estimates included in the 2012 budget, but also a look at certain departments and a cost allocation by service. The goal is to provide information to the reader that will allow them to have a full understanding of where their tax dollars are allocated, how much the rates of taxation are proposed to be for 2012, the importance of the Act 511 tax revenue, and a comparative look at the global finances of the Township from 2007 through the 2012 budget. How your Tax Dollars are allocated: At the highest level, the Township summarizes it’s expenditures into eight different categories. The table and graph below describe those eight categories and how the aggregate allocations are presented for 2012: “Category _[Deseription ‘Protection of Persons and Property | This category includes the Township's Police Department, the Township’s Community Development Department (code enforcement) and the Township's contributions to the three fire companies that provide service to Radnor properties (Radnor Fire Company, Bryn Mawr Fire Company and Broomall Fire Company). ‘More complete information on the Police and Community Development Departments can be found in the departmental narratives section of the budget. Page 7 of 168 2012 Township Manager Recommendation Budget Report (v.2) (ieategory: Description Public Works This category includes all of the departments that provide basic municipal and infrastructure services. ‘Those include: Garbage, recycling and yard waste collection, leaf collection, snow & ice removal, street cleaning, traffic signals / signage, curbs & sidewalks, road resurfacing / maintenance, fleet mechanics, street barricades (used for community festivals, parades, etc), storm and sanitary sewer maintenance, and other general highway services. More complete information on all of the services and amenities provided by the Public Works Department can be found in the departmental narratives section of the budget. Parks & Recreation This category includes two very different departments: Recreational Programming and Park Maintenance (of Public Works). Recreational Programming works with Various sports organizations in addition to offering many quality of life recreational programs (usually at an additional fee). Included in those programs are the activities at the Sulpizio Gym. Then, the Park Maintenance Department (of Public Works) is responsible for the maintenance and up-keep of all of the ‘Township's properties, parks and athletic fields. ‘More complete information on all of the programming offered by Recreational Programming as well as the services provided by the Park Maintenance Department (of Public Works) can be found in the departmental narratives section of the budget. General Goverament This caiegory encompasses the administrative functions of the Township which include the Administration, Finance, and Information Technology Departments as well as the Office of the Treasurer. The Administration Department includes the Board of Commissioners, all other volunteer Boards and Commissions, the Township Manager and Economic Development. The Finance Department includes accounting, payroll, human resources and related areas. Information Technology includes all of the computer and networking as well as the public access / ‘government channel responsibilities and the Township web site maintenance, Debt Service This category summarizes all of the Township's long-term debt obligations. It is treated separately to emphasize the importance of making sure the sufficient resources are available to pay the annual and on-going debt obligations. Page 8 of 168, 2012 Township Manager Recommendation Budget Report (v.2) ieee ON DMOM eee (eategory 27 Library Contributions The Township provides annual contributions to the Radnor ‘Memorial Library (a separate not-for-profit entity) as well | as leases the Library facility. Therefore, we account for that activity and building maintenance costs separate from other service providing expenses. ‘Community Organization Similar to the Library, the Township also provides funding Contributions to various (not-for-profit) community organizations that also provide quality of life services to Radnor residents Therefore, the accounting for this activity is separated as, well. Insurance & Retiree Benefits This category captures the costs associated with ie the Township's facilities, fleet, employee practices as well as the costs incurred for retiree health care, life insurance and other benefits. | ‘Township Resource Allocation “Aggregate (all funds) Community Debt Seevice, Organization $4,444,100, Contsbutions, $238,975, Protection to Insurance & Retizee Pessons & Peopesty, Benefits, $2,105,362. $9,545,928, asks & Rece $2757 473, Libary Contabutions, 840,650, Public Work, $11,984,082 Page 9of 158 2012 Township Manager Recommendation Budget Report (v.2) ‘Township Expenditure Makeup ‘Aggregate (all funds) Mselaneoes, $3000 DebeSerie, $444,100. ete Heath Cae aad ite osuance, $1,768,510 Salas and Copia Out, sams. : E agen Comma Onpization Contsbatons, $2016/55 ‘let Expeninues,. Papo Labs, 350800 S558 Papell Benes, Contra Services, 5210365 6996208 ‘sets Eaployee Deelopoat ‘nd Tring, $31,025, As indicated by the graph above, the total expenditures budgeted for 2012 are $34,895,555 (net of intrafund transfers totaling $310,824). This figure includes the expenditures from all of the ‘Township's funds which incorporate many different revenue sources. However, those revenue sources can be summarized in three large categories: z Deschiplii ee Em ‘Real Estate Taxes ‘These revenues are generated from a millage rate placed on all (63.69% of total revenues) properties in Radnor Towmship. The different property Classifications are Residential, Commercial, Ground, Exempt (non- ‘ax paying), and Public Utilities (non-tax paying). Included in the supplemental information section is a table that reflects the 20/1 (latest information available from Delaware County) Real Estate Tax Book Analysis ‘Act 511 Taxes These revenues are generated from five sources: Real Estate (35.67% of total revenues) ‘Transfer taxes, Business Privilege taxes, Mercantile taxes, Local Services tax (LST), and Amusement tax. The business privilege, ‘mercantile and amusement taxes are paid solely by businesses in Radnor Township and the LST is paid for by the employees through payroll withholdings. Other Revenues ‘As the name suggests, this is all the other revenues which broadly (0.64% of total revenues) include Intergovernmental revenues (from State and Federal sources), licenses, permits, fees, fines, interest, rentals, grants, donations, special assessments, departmental earnings (charges for services), and others. Page 100168 2012 Township Manager Recommendation Budget Report (v.2) ‘Township Revenue Sources Act 511 Tax Revenue Aggregate (al fonds) ‘Aggregate (all funds) ‘AccStt Tases, eee 1054.59 Real Estate ‘Taxes, 11,657,762. ‘Township Revenue Makeup ‘Aggregate (ll funds) Real Estate Taxes, $11,657,762. Special Assessments, $216,658 Miscellaneous, $290,000 Licenses, Peemits and Fees, $2,153,990 \Fines and Costs, $652,062 Page 11 of 168, 2012 Township Managet Recommendation Budget Report (v.2) As depicted from the graphs above, Radnor enjoys a diverse tax base. This base provides significant relief on the residential component of the real estate Compaiton of Averge Res Bate Cot for tax base. If the Township did not have the Act 511 taxes in place, Serie Gl eps wie Townip the $10,564,579 would have to be made up from real estate taxes That would equate to an 89% tax increase. The information | 32500 shown in the graph to the right assumes that all other services | #2000 would be funded and that the average assessed residential value | $1500 is $312,000. The purpose of sharing this information is to | sa emphasize the importance of the Township's diverse taxbase and | $00 the impact that a strong business community has in providing | * resources to fund the services provided by the Township. In addition to discussing the Township's total tax base, it is also important to understand the various [real estate] taxing entities that overlap within Radnor Township. There are three different taxing entities that overlap and assess real estate taxes. Those include the [Radnor Township] School District, Delaware County and Radnor Township. Please note that the School District is an entirely separate entity from the Township even though we share the same name (because we share contiguous boundaries). Therefore, the following graph is intended to demonstrate the breakdown of how the local tax invoices are derived. Please note that the Township portion assumes a millage rate of 3.7511 mills (the 2011 millage rate is 3.6411). ‘Where Your Local Property Tax Bill Goes County Schools 21.1439 6.9739 mills $2,176 1% Source: Township records and School Budget Report ied ‘Average Residential Property Valu in 2011s $312,655 The following information allocates the 2012 real estate tax millage rate (proposed and amended) into the various service categories described earlier in this section. All real estate tax revenues are deposit into the General Fund. Therefore, the service allocations are for the General Fund only (not aggregate). Again, the purpose of this information is to help the reader understand exactly where your tax dollars are going. The following table breaks down the Township's 2012 millage rate (proposed and amended) of 3.7511 into the broad service categories: Page 12 of 168 2012 Township Manager Recommendation Budget Report (v.2) ee ye ores fo Peery | | I eats tection axe ommanty Crist Contstatin | 00827 | | notemsn sa ‘The last graph of this section takes another look at the 2012 millage rate (proposed and amended) and how it is distributed amongst the broad service categories and attaches what the average Radnor resident will pay for these areas. The 2011 average residential assessed value is $312,656 which equates to a Radnor Township tax bill of $1,171 (rounded). Further, as detailed in the Real Estate Assessment Statistical Make-Lip report in the supplemental information section of this budget, over 61% of the residential properties have assessed values at or below the average and over 89% have assessed values below $529,727. aura e ie Benn: Page 13 f 168 2012 Township Manager Recommendation Budget Report (v.2) Departmental Cost of Service Breakdowns: This section of the report will take the Police Department, Public Works Department, Recreational Programming Department and Finance Department and show the major services / areas of responsibility and how much they are budgeted to cost in 2012. This information is the first step in allocating cost in such a manner as to try and pinpoint the true cost of service. The budget amounts reflect accurately the totals for 2012, however to cost allocations are based mostly on time allocations. So they are still estimated at this point. Additional information on the specific services provided by each of these departments and those departments not included in this section can be found in the Departmental Narratives section of this report. Police Department “Administation, $924,667 Investigations, $712,989 “Traffic Safety Mccann TNPeMaxe 72250 Cons Veh a ‘Eaten, sas Ta Seis, suis Patrol Investigations a simi, soe bial sisi Taig. me Tecan, 0s shae7ste Page 1 of 158 2012 Township Manager Recommendation Budget Report (v.2) Department of Public Works Service Breakdown Building & Grounds, Rogineesing, $401,903, Leave Time, $664,969 Solid Waste, Recycling 8 Yard Pick Up, Emergency Management $2,862,105, ean (FEMA), $56,501 Barsicades, $4,670 Leaf Collection, $221,397 Highway & General Services, $582,158 Street Cleaning, $40,311 Snow & Ice Removal, $371,655, ‘Taaffe Signals & Signs, $496,270 Mechanics, $353,340. Park Maintenance, Aesth) Road Maintenance &. Repalis, $146,756 Drainage & Storm ‘Water, $119,461 Finance Department Service Allocation Projects / Pension Asset Mgnt ‘Piel Projet Reconciliation, 2% Planning, 4% Accounts Payable, 7 Bodgeting / Analysis, Contracts / Bidding / Ta) Public Info Offices, 10% Financial Reposting / Audit, 14% Paysoll / Human Resources, 16% Genecal Ledges / “Accounting, 2% (Cash Mgmt / Treasury / Real Betae Tex ‘Admiaisteation, 3 ActSEL Tex ‘Administation, 28% Page 15 of 168 2012 Township Manager Recommendation Budget Report (v.2) Recreational Programming: Given the nature of this department and the emphasis to generate revenues that cover the programs offered, additional information is presented. The table below reflects the amount of anticipated revenue to be generated by the Recreational Programming along with the uses of those funds in providing a vast variety of terrific recreational programming. SCOZECESE EERE EAS EGSEDE ESSE EEE Programming Ineome $550,000 Sulpizio Gym Programming / Rental Income 100,000 [New] Programming Income 10,000 Sponsorship Income 18,500 Discount Ticket Program Income 1,500 ‘New Fees Income 35,000 Total Sources $715,000 ices a BaEA FUE CES SRE Tap EEE Recreational Programming Direct Costs 429,724 Sulpizio Gym Direct Costs, 100,000 Recreational Programming Overhead (Admin.) 353,322 Total Uses Department of Recreation & Community Programming 2012 Opecsting Expenditace Budget Depastment Development &e Special Projects, Community Support, Sponsorships & $68,521.72 $22,103.78 Front Desk &e Othee ‘Department Support, $13,262.27 Programming, $415,551.06 Page 16 of 168 2012 Township Manager Recommendation Budget Report (v.2) Fund Balance and Activity Summary: Parks & en fee ec ee Se ee i) ft rete Beginning Fund Balance —_$ 5,471,373 $2,469,676 $ 76,125 $ 122,638 $1,006,496 $175,059 $ 64,506 Revenues __ 27,811,220 5526464 631,931 __ 101,260 __—542,083_—*180,524_—_75,175 ‘Total Resources Available 33,282,594 7,996,140 708,056 = 223,898 1,548,579 355,583 139,681 Expenditures 341,020) (5,127,514) _ (631,931) 52,340) = (4,439,101) (93,450) ‘Net Results from Activity |” 3,470,200, 398,951 = 61,080) 083, 4.258577 18,275) | Add: Transfers In = - 4,258,577 60,824 Less: Transfers Out (372,289) _ (690,664) 71,091) = (42,549) Ending Fund Balance 5,569,285 247,692 857458 7964506 Net Increase / (Decrease) in Fund Balance 97,911 8,286 - 88,920 (169,008) e e General Fund: Fund Balance Requirement 15% of Revenue Target Level $4,171,683 ‘Actual Percentage of Revenues 20.03% Difference $1,397,602 Key Points: 1. General Fund: [Please see the aggregate and detailed General Fund information] The General Fund is balanced with a $97,911 (0.40% of expenses) surplus. This provides very litle allowance for variances; however this is helped by a healthy, above target fund balance. 2. The Sewer Fund: ‘The Sewer Fund is projected to be balanced in 2012. It also indudes several ‘major capital improvement items which is being funded through a 3.37% increase (85.57 / 1,000 gallons to $5.76 / 1,000 gallons) in the Sewer Rent with steady water usage as reported by Aqua (which isthe basis for the amount of sewer rent charged by the Township). 3, The Liquid Fuels Fund: The 2012 budget proposes that 81% of the funded received by the State will be used towards funding the Township's road resurfacing program with the balance of the funds to be used for road salt for state roads plowed by the Township (see the Capital improvement plan). 4. Capital Improvement Fund: (Please see the capital improvement plan for more details) with minimal funding, only the absolute replacements in the Township's fleet were included with litle tono funding for any other departmental capital need being funded. 5. Parks & Open Space Fund: As was the case in prior years, 100% of the funding allocated to this fund will be used to pay down debt service issued to acquire open space; specifically as part of the 1994 referendum that was approved by the voters and resulted in the 1996 borrowing of $7.5 million and an additional $2.0 million in 2002 which is now consolidated in the Townships refunded bonds, Series 2009. 6. Willows Fund: As the Township works for find alternative uses for the Willows Mansion, the activity being budgeted for 2012 include the continue rental of the mansion for events with limited funds for minor repairs. Page 17 of 158 2012 Township Manager Recommendation Budget Report (v2) Funds Not Included in the Table Above: 7. Investigation Fund: This fund has limited activity that is specifically earmarked for certain Police activities. The budgetary activity is limited to the amount of dollars in the fund. 8. Special Assessment Fund: Alll of the proceeds of prior years’ payment agreements are budgeted to bbe transferred to the Debt Service fund since the source of funds for the improvement projects were prior bond issuances. Aggregate 2011 Financial Information: Page 18 of 168 Conran Servis coat ‘aga Profesor Mal. Reps ites est Bepentree Comamarsty Org. Conte Copia Outey Mictneoas Intaund Trance TOTAL EXPENDITURES, 2012 Township Manager Recommendation Budget Report (v.2) : ma 5 So] (ecco es] eee Lomas 2 Z ea ‘Variance Discussion on Aggregate Data: Business Taxes On, aes e “Assumes 23.02% increase inthe millage rate which is based on the Department of Labor’s Philadelphia region CPI from October 2010 to October 2011 (updated in v2). Please see the CPA Worksheet in the supplemental information section of this budget. ‘Assumes moderate growth around 2% over the 2011 budgeted figures except for the LST revenues which reflect the reduction of 9.6154% School District share as result of the cancelled Grounds Maintenance Agreement. License, permitting & Fees Reflects strong Police activity and collections resulting from increased enforcement. Grants & Gifts 2011 included significant increases from one-time State shared revenues for Pension and Volunteer Fire Relief contributions. Therefore the 2012 reflects pre-2011 levels. Departmental Earnings Reflects the Township’s continued efforts to recover direct service costs in situations where it's appropriate. The v2 amendment includes updated Aqua ‘water usage information, which changed the revenue estimate and RHM payment estimate (on the expense side). Healthcare Agreement require the 3% and all the non-bargaining employees’ increases will be based on performance and subject to Board approval. ‘The Township continues to benefit from our participation in the Delaware Valley Health Insurance Trust which is limiting the amount of our renewal increases in spite of the plan design (reference: 3% increase versus industry standards in the mid to upper teens). Page 19 of 168 2012 Township Manager Recommendation Budget Report (v.2) Gam coe fa ‘Community Org. Support The apparent decrease in Fire is the result from one-time volunteer relief pass through contributions in 2011 (from the State). The 2012 contributions actually show increases to all entities. Contractual Services ‘The legal / professional increases are the result of the outsourced engineering service (which is offset by reductions in engineering wages) as well as increases in the legal and labor attorney budgets due to litigation and employee related legal situations. Capital Expenditures ‘As noted later in the executive summary, the 2012 capital is limited to the minor ‘amount of funding being transferred from the General Fund which makes up approximately $250,000 of the total. ‘The remainder of the capital is made up of Liquid fuels road resurfacing, Bryn Mawr Fire floor contributions, PEG Grant spending and Library improvements. Debt Service Summary ‘The Township's outstanding principal debt balance at 12/31/2011 will be $50,025,000. Currently the Township has four bonds outstanding, Series 2004, Series 2007, Series 2009 (refunded 20024A and 204A), and Series 2010 (refunded 2002A). ‘The table below reflects the summary of budgeted debt obligation transactions for 2012. : me $17,195,000 380,000 14,585,000 15910000 "15,890,000 2 “S00 15;883,000, $7,695,000 = sos.o00 "6403,000 |$13735,000 1,365,000__ 10,635,000 "2004 Series 2007 Series 2009 Series ‘The Township has utilized the bond issuances through the years to fund various activities. The following table reflects the sources of revenue being used to satisfy the 2012 debt service. The increase in fund balance allocated to the debt service fund is intended to build a small reserve set-aside into the debt service fund to help offset the risk of non-payment associated with the two remaining outstanding Notes (Wayne Art Center and Radnor Fire Company). jayne pany) G ‘General Fund ~ General Revenues / Real Estate Taxes, ‘Sewer Fund ~ Sewer Rent ‘Special Assessment Fund ~ Infrastructure Projects Parks & Open Space Fund — Real Estate Transfer Tax Willows Fund ~ Willows Activity / General Fund Transfer Wayne Art Center and Radnor Fire Company Repayment Page 200f 168 2012 Township Manager Recommendation Budget Report (v.2) Annual Debt Service Obligations From 2012 through Maturity LPEPEPP IEE S SP PP PPM Pe PPP Pe - re? Ra SPR PW Capital Funding for 2012 ‘The fund balance in the capital improvement fund is made up from previous bond issuances and general fund transfer proceeds. The primary focus of the 2012 plan was to only fund the absolute necessities and let those other items that need funding wait until after the January 2013 meeting to discuss a capital funding plan. Therefore, in order to keep those unfunded items included, the 2012 plan is separated into two groups: Funded and Unfunded. Please see the Five Year Capital Plan for more details. CAPITAL PLAN SCHEDULE OF SOURCES & USES: SOURCES: Fund __ Fund Title 05 General Capital Sources $ 262,250 $3,145,525 $ 2,247,025 § 2,502,650 $ 12,220,975 03 Liquid Fuels Funding 52,024 «522,024 2202 © 52,024 = 822,024) 2,610,120 02 Sanitary Sewer Rentals, 402,000 510000» 549,000 510,000 708,000} 2,670,000 05 PEG Grant Funding 19,550 37,700 SUBTOTAL ~ BUDGETED ‘Add; Unfunded 2012 Planitems __ 1,211,000 TOTAL SOURCES $2,414,014 Page 21 of 168 USE 2012 Township Manager Recommendation Budget Report (v.2) non 9 10 u Se: Code Major Category Strom WaterMgmt. $510,000 $ 265,000 $ 335,000 $ 415,000 $ 290000] $ 1,815,000 Sanitary Sewer Mgt. 402,000 510,000 540,000 510,000 © 708,000 2,670,000 Fire Services 50,000 0,000 - - . 100,000 Traffic Control Systems 195,000 108,000 60.000 62,000 64,000 489,000 Township Buildings and Grounds 6,000 30,000 45,000 20,000 20,000 171,000 Road and Bridge Construction 522024 602k 68nd 4,024 7724) 3,305,120 Equipmentand Vehicles 412,250 «1514025 93505 945,650 878,525] 4,685,475 Parks, Willows and Recreation Fadlities 250,000 873,500 «157,000 © 415,000 625,000} 2,320,500 Special Assessment Projects - 545,000 425,000 750,000 1,948,000 PEG Grant 19,550 160,585 TOTAL- ALL USES 539 [$17,661,660 Capital Funding Source Reconciliation Summary The various capital projects identified above are expected to be funded through various sources. The table below reconciles the capital funding summary from above to the aggregate table and fund budget worksheets: Prior Liquid Issued Library Sewer Fuels Debt__Debt_Reat (State) Total ‘Storm Water Memt. > = - = - s = Sanitary Sewer Mgiat. - - > 402,000 - = 402,000 Fire Services 50,000 : : - - - 50,000 ‘Traffic Control 5 5 : : : 5 Bags & Grounds, a : 7 : : e Road & Bridge - - - = 522,004 - 522,024 Equip. & Vehicles 212,250 = : - - = 212250 Parks & Rec. - 5 a a : a E Spec. Assessments : . _ _ a E PEG Grant : : e - = 16,740 16,740 Total $_262250 $ - $= $402,000 § 522,024 § 16,740 $1,203,014 Page 22 of 168 2012 Township Manager Recommendation Budget Report (v.2) Capital Funding Source Reconciliation Summary: ‘Capital Improvement Fund: General Fund Transfers 245,600 PEG Grant 16,740 Capital Improvement Fund Total 5 262,340 ‘Sewer Fund Total $402,000 Liquid Fuels Total $522,024 Five-Year Capital Plan Total $1,186,364 ‘Add: General Fund Small Equipment Items 16,650 Grand Total $1,203,014 Summary: ‘The Township Administration has worked extremely hard to develop this budget, especially in developing the service cost breakouts. We will continue to put forth the efforts necessary to achieve greatness for Radnor Township by being fiscally responsible, transparent, honest, and accountable in an effort to deliver the best services to our stakeholders. With the Board’s leadership, the Township hhas the resources necessary to navigate these tough political and economic times. The budget represents one of the major resources to make sure that Radnor Township continues to “Make a Great Place Better!” Respectfully Submitted, = i Robert A. Zienkowski, William M. White, ‘Township Manager Finance Director Page 23 of 168 GENERAL FUND #01 Page 24 of 158 Radnor Township, PA ‘Administration Department 2012 Operating Budget Natrative ea Department Summaty: ‘The Administration Department consists of the Township Manager, Assistant Township Manager, ‘Administrative Assistant to the Township Manager, and Receptionist. The Manager's office coordinates the overall operations and functions of the entire Township. Administrative resources are provided to other departments when requested. Personnel support, Right to Know requests and public information, safety and training, Board of Commissioner agenda preparation, legal ‘support, information coordination/customer relations, and the Business Tax Compliance program all are functions of this department Setvice / Program Descriptions: Personnel Support Staff works closely with the Finance Department in preparing, workers compensation reports, retirement information, coordinating health care claims, and providing support for human resources as needed with all departments. All retiree health care ‘questions are responded to by staff. Board of Commissioners | Staff works to prepare the agenda packets and other materials as Support needed by the Board. All subcommittce meetings are coordinated within the department. Research and documentation is provided to the Commissioners on various topics ‘The Township Solicitor works closely with the Manager, staff and | Board to provide necessary legal advice and recommendation on various matters. Labor Counsel assists the department in contract negotiations, specialized personnel issues and other matters. [Legal Support 4 |Heonomic Development | This newly created division will be responsible for working. closely with Radnor businesses, the School District, the Colleges/Universities as well as find opportunities for new nusinesses to move to Radnor. Page 25 of 168 Radnor Township, PA Administration Department 2012 Operating Budget Narrative

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